Latest Brady Fintrade CTRM developments meet rising demand for concentrates and ESG

Electric vehicles are now the go-to mode of transport for green travel, driven by global green transition policies. With this trend comes greater demand for the rare metals (known as concentrates). Not only are these particularly hard to source in the first place but high quantities are needed to power EV batteries. This huge surge in demand for sustainable travel has shifted the demand from oil to concentrates. 

In addition, customers want to source products ethically. This means that metal concentrate trading participants need to ensure they have the right infrastructure and pricing models in place, to support the growing demand from new and existing customers. 

Investing in a technology-driven, modernised architecture using smart algorithms to more accurately price the concentrates products is now essential. Coupled with this, Environmental, Social Governance (ESG) is high on board agendas. There is rising demand for ethical sourcing of raw materials in the metals trading value chain, making ‘traceability’ an equally important evaluation criteria when considering investment in a new commodity management platform.

Why the Concentrate Market is gold dust

The pressure to depart from oil trading due to stricter environmental policies has now opened up space for the trading of rare metals used for EV vehicles. So, as electric vehicles become more prominent on a global scale, the raw materials necessary to make and generate EV charging batteries are unsurprisingly being circulated more frequently. Coupled with their store of value, it is no surprise there’s a growing demand from customers. 

Regulating the Concentrate Market with Fintrade

With traders now looking to capitalise on the concentrate market, off the back of the EV boom, they require a system that maps out the specific nuances around how to navigate trading effectively and transparently. Whilst they’re concerned with sourcing material instead of producing it, the costs at stake are still high. Market volatility, complex contractual terms and variation in qualities and content, which change over the life of the contract, make administration and risk management of metal concentrates complex. Brady’s Fintrade CTRM solution offers a concentrates trading module that enables the capture of these contract terms with ease of analysis and reporting on their specifics.

The rising tide of ESG

It’s clear sustainability plays a bigger role in our day-to-day lives now more than ever before. With that, people and businesses are becoming more conscious of what materials they use and products they consume. Businesses are monitoring their carbon footprint and seeking to  minimise the negative social impacts on local communities and exploited regions.  

Technology-driven business processes can help reduce the negative fallouts from commodity trading by providing transparency on where the materials have been sourced from. 

With ESG at the forefront of Fintrade’s development, traders can latch onto the boom without compromising their profits or the wider environment. Identifying what is moving along the trade life cycle, from origin to transportation to end point is a key principle of ESG in the context of commodities trading. Fintrade offers an exceptional inventory management module to help trace goods precisely. Customers can confidently trace location and attach the goods to voyages. Furthermore, they can assign the appropriate cost value to the goods at any stage (COGS: Cost Of Goods Sold)

Transparency in trading is key 

Having access to a holistic commodities management solution that connects with ease to an organisation’s ecosystem enables traders to gain more insight into the impact of trading. Over the past 12 months Brady has focused on modernising Fintrade’s architecture, especially the development of robust APIs,  for ease of interoperability to other business critical systems to drive even greater trading efficiencies.

Commodities trading is changing and Brady Fintrade is helping market participants to adapt at speed with confidence.

Written by

Tasja Botha
Business Lead, Commodities Portfolio, Brady Technologies

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Latest Brady Fintrade CTRM developments meet rising demand for concentrates and ESG